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This Example illustrates the guidance in paragraphs
230-10-45-25 through 45-26
and
230-10-45-28 through 45-32
for a statement of cash flows under the direct method for a financial institution. The Example is intended as an illustration only. Also, the illustration of the reconciliation of net income to net cash provided by operating activities may provide detailed information in excess of that required for a meaningful presentation. Other formats or levels of detail may be appropriate for particular circumstances.
","snippet":"This Example illustrates the guidance in paragraphs 230-10-45-25 through 45-26 and 230-10-45-28 through 45-32 for a statement of cash flows under the direct method for a financial institution. The Example is intended as …","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:a3368b9909df2504fae35dffdc9f19f6767c1bbf05d29269b2c2ab45b2da21eb","downloaded_from":"2026-09-09T23:13:13.043Z","last_downloaded_at":"2026-09-09T23:13:13.043Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147478024","source_sha256":"eebeb9db4a09ede689aeb6bbbd8513423465f22f28f48c4f9078394ba062ff3e"}},{"citation":"230-942-55-2","para":"55-2","html":"
Presented below is a statement of cash flows for Financial Institution, Inc., a U.S. corporation that provides a broad range of financial services. This statement of cash flows illustrates the direct method of presenting cash flows from operating activities, as encouraged in paragraph 230-10-45-25.
","snippet":"Presented below is a statement of cash flows for Financial Institution, Inc., a U.S. corporation that provides a broad range of financial services. This statement of cash flows illustrates the direct method of presenting…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:2d1c0c937b263a26ab94672b27c3b5bcf33a46823ea4cd59094b428cc881512a","downloaded_from":"2026-09-09T23:13:13.043Z","last_downloaded_at":"2026-09-09T23:13:13.043Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147478024","source_sha256":"eebeb9db4a09ede689aeb6bbbd8513423465f22f28f48c4f9078394ba062ff3e"}},{"citation":"230-942-55-3","para":"55-3","html":"
Paragraph superseded by Maintenance Update 2017-06.
","snippet":"Paragraph superseded by Maintenance Update 2017-06.","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:24eac38871f5bcc9932dcf21741a33b697634c2366e9ad01243ffb45b7e7c8e1","downloaded_from":"2026-09-09T23:13:13.043Z","last_downloaded_at":"2026-09-09T23:13:13.043Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147478024","source_sha256":"eebeb9db4a09ede689aeb6bbbd8513423465f22f28f48c4f9078394ba062ff3e"}},{"citation":"230-942-55-4","para":"55-4","html":"
Summarized below is financial information for the current year for Financial Institution, Inc., which provides the basis for the statement of cash flows presented in paragraphs
942-230-55-2 through 55-3
.
","snippet":"Summarized below is financial information for the current year for Financial Institution, Inc., which provides the basis for the statement of cash flows presented in paragraphs 942-230-55-2 through 55-3.","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:83ada8547aaafed8042c885270b91f76ffdaa284a634457c93b5e2488f3c541a","downloaded_from":"2026-09-09T23:13:13.043Z","last_downloaded_at":"2026-09-09T23:13:13.043Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147478024","source_sha256":"eebeb9db4a09ede689aeb6bbbd8513423465f22f28f48c4f9078394ba062ff3e"}},{"citation":"230-942-55-5","para":"55-5","html":"
The following transactions were entered into by Financial Institution, Inc., during 19X1 and are reflected in the preceding financial statements:
  1. a
    Financial Institution sold trading securities with a carrying value of $20,400 for $20,550 and purchased trading securities for $21,075. Financial Institution recorded unrealized appreciation on trading securities of $25. Financial Institution also sold investment securities with a book value of $2,300 for $2,225 and purchased new investment securities for $4,000.
  2. b
    Financial Institution had a net decrease in short-term loans receivable (those with original maturities of 3 months or less) of $2,250. Financial Institution made longer term loans of $36,300 and collected $26,550 on those loans. Financial Institution wrote off $250 of loans as uncollectible.
  3. c
    Financial Institution purchased property for $500 to be leased under a direct financing lease. The first annual rental payment of $131 was collected. The portion of the rental payment representing interest income totaled $52.
  4. d
    Financial Institution purchased equipment for $1,000 to be leased under a leveraged lease. The cost of the leased asset was financed by an equity investment of $400 and a long-term nonrecourse bank loan of $600. The first annual rental payment of $90, of which $28 represented principal, was collected and the first annual loan installment of $74, of which $20 represented principal, was paid. Pretax income of $8 was recorded.
  5. e
    Financial Institution purchased new property, plant, and equipment for $450 and sold property, plant, and equipment with a book value of $210 for $260.
  6. f
    Customer deposits with Financial Institution consisted of the following.
    • 1/1/X1 12/31/X1 Increase Demand deposits \" $8,000 \" \" $8,600 \" $600 Negotiable order of withdrawal accounts and savings accounts \" 15,200 \" \" 17,600 \" \" 2,400 \" Certificates of deposit \" 14,800 \" \" 16,800 \" \" 2,000 \" Total deposits \" $38,000 \" \" $43,000 \" \" $5,000 \"
    Sales of certificates of deposit during the year totaled $63,000; certificates of deposit with principal amounts totaling $61,000 matured. For presentation in the statement of cash flows, Financial Institution chose to report gross cash receipts and payments for both certificates of deposit with maturities of three months or less and those with maturities of more than three months.
  7. g
    Short-term borrowing activity for Financial Institution consisted of repayment of a $200 90-day note and issuance of a 90-day note for $250 and a 6-month note for $100.
  8. h
    Financial Institution repaid $200 of long-term debt and issued 5-year notes for $600 and 10-year notes for $400.
  9. i
    Financial Institution issued $850 of common stock, $500 of which was issued upon conversion of long-term debt and $350 of which was issued for cash.
  10. j
    Financial Institution acquired $175 of treasury stock.
  11. k
    Financial Institution declared dividends of $320. The fourth quarter dividend of $80 was payable the following January.
  12. l
    Financial Institution's provision for income taxes included a deferred provision of $58.
  13. m
    In accordance with the definition of the term cash, interest paid includes amounts credited directly to demand deposit, negotiable order of withdrawal accounts, and savings accounts.
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